1. When did the Indian Contract Act come into 5.

“The parties who enter into an agreement must

force?
a) on the 1st of September, 1872;
b) on the 1st of March, 1872;
st
c) on the 1 of October, 1872;
th
d) on the 11 of September, 1872.
2. According to the section 2(h) of the Indian
Contract Act, choose the correct definition of a
contract given below.
a) a contract is an agreement which is enforceable
by the decision of an employee in a firm;
b) a contract is an agreement which is enforceable
by law;
c) a contract is an agreement which is not
enforceable by law;
d) a contract is an agreement which is enforceable
by the decision of a rector.
3. According to the section 2(e) of the Indian
Contract Act, choose the correct definition of an
agreement given below.
a) every promise and every set of promises
forming the consideration for each other is not an
agreement;
agree upon the subject matter in the same sense
and at the same time”. Which one of given below
refers to the definition of mentioned above?
a) Social Agreement;
b) Jus in personam;
c) Consensus ad idem;
d) E-Contract.
6. Jack owns three houses, one is small & other
two are bigger. Jack wants to sale one of the bigger
houses to Rose. Rose thinks that she is purchasing
the small house. In this case, is there Consensus ad
idem?
a) Yes, there is;
b) No, there is not;
c) There is not a correct answer among the options;
d) None of the above;
7. A ... is that which does not give rise to legal
consequences. In case of its breach the parties
cannot go to the Law Court to enforce a right.
a) legal disagreement;
b) jus in personam;

b) not every promise and every set of promises c) social agreement;

forming the consideration for each other is an d) jus in rem.
agreement;
8. A … is that which gives rise to legal
c) every rejection and every set of rejections consequences and remedies in the Law Court in
forming the consideration for each other is an case of its breach.
agreement;
a) consensus ad idem;
d) every promise and every set of promises
forming the consideration for each other is an b) legal agreement;
agreement. c) social agreement;
4. A/an … comes into existence by the process of d) legal disagreement.
offer by one party and its unqualified acceptance
by the other party. 9. In the electronic age, the whole transaction can
be completed in seconds, with both parties simply
a) disagreement; affixing their … to an electronic copy of the
b) agreement; contract.

c) withdraw; a) none of the below;

d) none of the above. b) names;

c) seals;
d) digital signatures. provide business services within a stipulated
period of time, and the other party undertakes to
10. According to the Indian Contract Act, what accept goods, work, services and pay for them”?
kind of relationship must the parties create?
a) Indemnity;
a) none of the below;
b) Promisor;
b) legal;
c) A definition of a business contract;
c) illegal;
d) A definition of an indemnity holder.
d) voidable.
16. Who can be the parties of a business contract?
11. According to the Indian Contract Act, how
must the consent of parties be? a) Legal entities;
a) free and genuine; b) Individuals;
b) unfree and bogus; c) Illegal entities;
c) only bogus; d) A and B.
d) only voidable. 17. What do “liberty to conclude a business
contract and mutual property liability of the
12. Offer must be … . parties” refer to?
a) only voidable; a) Contractual relations;
b) uncommunicated, in unclear words and capable b) Main principles of contractual relations;
of creating illegal relationships;
c) Mutual interest of the parties;
c) communicated, in clear words and capable of
creating legal relationships; d) None of the above.
d) free and genuine. 18. What does “apply the means and methods
provided by law for the protection of the rights and
13. List the circumstances associated with a legitimate interests of business entities” refer to?
business contract.
a) Rights of the parties to a business contract;
a) conclusion;
b) Obligations of the parties to a business contract;
b) execution;
c) Terms of a business contracts;
c) amendment and termination of a contract;
d) Main principles of contractual relations;
d) all of the above.
19. What does “ensure timely conclusion of
14. What is “to regulate the relations arising from business contracts in cases specified in the
the conclusion, execution, amendment and legislation” refer to?
termination of business contracts between business
entities” in “Contracting and legal basis of activity a) Rights of the parties to a business contract;
of business entities”?
b) Obligations of the parties to a business contract;
a) last section of the law;
c) Terms of a business contracts;
b) the purpose of the law;
d) Main principles of contractual relations;
c) amendment of a contract;
20. What does “mutual interest of the parties” refer
d) none of the above. to?
15. What is “an agreement whereby one party a) Terms of a business contract;
undertakes to transfer goods, perform work or
b) Obligations of the parties to a business contract;
c) Rights of the parties to a business contract;
d) Main principle of contractual relations;
21. What does “file petitions and file complaints to
state and other bodies, as well as to officials, and
receive written and justified responses from them”
refer to?
a) Terms of a business contract;
b) Obligations of the parties to a business contract;
c) Rights of the parties to a business contract;
d) Main principles of contractual relations;
22. What does “fulfill their obligations under the
concluded business contracts in a timely manner
and in proper order” refer to?
a) Terms of a business contracts;
b) Main principles of contractual relations;
c) Rights of the parties to a business contract;
d) Obligations of the parties to a business contract;
23. What do “liability of the parties for non-
fulfillment or improper performance of contractual
obligations, dispute resolution, requisites of the
parties” refer to?
a) Terms of a business contracts;
b) Main principles of contractual relations;
c) Rights of the parties to a business contract;
d) Requirements for a business contract;
24. What do “quality, variety and price of the
goods supplied (work, services), deadlines” refer
to?
a) Requirements for a business contract;
b) Main principles of contractual relations;
c) Rights of the parties to a business contract;
d) Terms of a business contracts;
25. Choose the correct option.
a) The expiration of the business contract frees the
parties from liability for its violation;
b) The expiration of the business contract gives the
parties more liability for its violation;
c) The expiration of the business contract does not
free the parties from liability for its violation;
d) None of the above.
26. What kind of contracts under Indian Contract
Act perform similar commercial functions in
providing compensation to the creditor for failure
of a third party to perform their obligation?
a) Contract of guarantee;
b) Contract of indemnity;
c) Contract of Sale of Goods;
d) A and B;
27. Which one of the following refers to protection
against future loss?
a) Guarantee;
b) Indemnity;
c) Sale of Goods;
d) A and B;
28. Which one of the following is defined as an
agreement to answer for the debt of another in case
he makes default?
a) Guarantee;
b) Indemnity;
c) Sale of Goods;
d) A and B;
29. Which one of the following does this definition
of “a legal arrangement between two parties in
which one party agrees to pay another party for a
loss or harm that meets certain requirements and
conditions unless other circumstances are
specified” match to?
a) Contract of guarantee;
b) Contract of indemnity;
c) Contract of Sale of Goods;
d) A and B;
30. Which one of the following matches to the
indemnifier as a definition?
a) The promisor, who agrees to make up the d) a contract to perform the promise or discharge
damage caused to the other group, is called the the liability of a fifth person in case of his default.
Indemnifier;
34. Which of the following includes a principal
b) The person who is assured of compensation for debtor, the creditor, and the surety?
the damage incurred;
a) Contract of guarantee;
c) The promisor, who does not agree to make up
the damage caused to the other group, is called the b) Contract of indemnity;
Indemnifier; c) Contract of Sale of Goods;
d) A and B; d) A and B;
31. Which one of the following matches to the 35. The person in respect of whose default the
indemnified as a definition? guarantee is given is … .
a) The promisor, who agrees to make up the a) Creditor;
damage caused to the other group, is called the
Indemnifier; b) Surety;

b) The person who is assured of compensation for c) Principal debtor;

the damage incurred; d) A and B;
c) The promisor, who does not agree to make up 36. The person to whom the guarantee is given
the damage caused to the other group, is called the is … .
Indemnifier;
a) Creditor;
d) A and B;
b) Surety;
32. What is the purpose behind a contract of
guarantee? c) Principal debtor;
a) to escape from liability of paying to the creditor d) A and B;
that his money will not be paid back by the surety
37. The person who gives the guarantee is … .
if the debtor makes a default;
a) Creditor;
b) to give additional security to the creditor that his
money will be paid back by the surety if the debtor b) Surety;
makes a default;
c) Principal debtor;
c) to watch the process of that the creditor’s money
will be paid back by the surety if the debtor makes d) A and B;
a default; 38. What kind of contract is tripartite in nature?
d) none of the above. a) Contract of guarantee;
33. Which one of the following matches to the b) Contract of indemnity;
contract of guarantee as a definition?
c) Contract of Sale of Goods;
a) a legal arrangement between two parties in
which one party agrees to pay another party for a d) A and B;
loss;
39. “Anil buys goods from a seller and Mrinal tells
b) a legal arrangement between four parties in the seller that if Anil doesn’t pay you, I will”.
which one party agrees to pay another party for a According to this example, what kind of contract is
loss; being made?
c) a contract to perform the promise or discharge a) Contract of guarantee;
the liability of a third person in case of his default;
b) Contract of indemnity; 45. “A bought a horse from B. A wanted to enter
the horse in a race. Turns out the horse was not
c) Contract of Sale of Goods; capable of running a race on account of being lame.
d) A and B; But A did not inform B of his intentions. So B will
not be responsible for the defects of the horse”.
40. Which one of the following is defined to According to this example, which one of the
include both a person who actually purchases the following is correct?
goods and a person who is almost willing to do so?
a) The buyer himself is responsible in this situation;
a) Creditor;
b) The Doctrine of Caveat Emptor will apply;
b) Surety;
c) The seller is responsible for this situation;
c) Principal debtor;
d) A and B.
d) Buyer.
46. If the buyer relies on the knowledge and/or
41. When the buyer receives the actual products or technical expertise of the seller, who will be
receives the key to the warehouse where the goods responsible for the defective product?
are kept, delivery becomes … .
a) The seller;
a) Constructive;
b) The buyer;
b) Contract of indemnity;
c) The intermediary;
c) Actual;
d) none of the above.
d) A and B;
47. If the sale is done via a sample as well as a
42. When does an agreement of sale become a sale? description of the product, who will be responsible?
a) Buyer rejects to purchase a product; a) The seller;
b) Time has to elapse; b) The buyer;
c) Conditions have to be fulfilled; c) The intermediary;
d) B and C; d) none of the above.
43. Which one of the following translates to “let 48. If the goods are not of marketable quality, who
the buyer beware”? will be responsible?
a) Doctrine of caveat emptor; a) The seller;
b) Consensus ad idem; b) The buyer;
c) Jus in personam; c) The intermediary;
d) Jus in rem; d) none of the above.
44. Which one of the following lays the 49. If the goods that is being purchased, do not
responsibility of their choice on the buyer match the description, who will be responsible?
themselves?
a) The seller;
a) Contract of guarantee;
b) The buyer;
b) Contract of indemnity;
c) The intermediary;
c) Contract of Sale of Goods;
d) none of the above.
d) Doctrine of caveat emptor;